What is Gift Aid and Historic Gift Aid?

April 2025

Find out more about how to boost your donations value

Card payment machine in black with gift aid options

Gift Aid is a scheme created by the UK Government that allows charities to reclaim the tax already paid on donations from UK taxpayers. For every £1 donated, an extra 25p can be claimed by charities from the government, increasing the value of the donation at no extra cost to the donor.

In order for their donations to be eligible for Gift Aid, donors must make a Gift Aid declaration, asserting that they are a UK taxpayer and that they wish for the charity to reclaim the tax back on their charitable contribution.

The UK government introduced Gift Aid back in 1990. At this time, there was a minimum donation limit of £600. The limit was removed in April 2000, making donations of any size eligible to be Gift Aided and meaning a big boost for smaller charities and community organisations.

In the tax year to April 2025, HMRC paid charities £1.7 billion in Gift Aid*, up 7% on the previous year.

*https://www.gov.uk/government/statistics/uk-charity-tax-relief-statistics/uk-charity-tax-relief-statistics-commentary

How a Charity Benefits from Gift Aid

Charities can increase the value of donations from eligible UK taxpayers by 25%. This means that for every £1 donated, a charity can claim an extra 25p from HM Revenue & Customs (HMRC), making a £10 donation worth £12.50. This tax relief significantly boosts a charity’s income at no additional cost to the donor.

What a Charity Needs to Do to Claim Gift Aid

HMRC Recognition: The charity must be recognised as a charity or registered as a Community Amateur Sports Club (CASC) with HMRC for tax purposes.
Gift Aid Declarations: For each eligible donation, the charity must obtain a valid Gift Aid declaration from the donor. This declaration confirms that the donor is a UK taxpayer and has paid enough Income Tax or Capital Gains Tax to cover the Gift Aid amount the charity will claim on their donation. Declarations can be written, online, or verbal. When you fundraise with Dona, we supply you with HMRC-ready reports, so you can complete your Gift Aid declarations more easily.
Register for Charities Online: Charities need to register for HMRC’s Charities Online service to submit their Gift Aid claims electronically.
Compile Donation Records: Meticulous record-keeping is essential. Charities must compile details of all eligible donations, including donor names, addresses, and the amounts donated. The Dona management portal streamlines this process for registered charities by generating the HMRC reports ready for the Gift Aid application, simplifying the administrative burden and ensuring charities can efficiently claim the tax relief they are entitled to.
Submit Claims: Claims are made online via the Charities Online service, typically using a spreadsheet of donations. Dona organisations are able to download HMRC-friendly reports, in a spreadsheet format that is quick and easy to submit to Charities Online.

How Donors Benefit from Gift Aid

For basic rate (20%) taxpayers, the direct financial benefit of Gift Aid goes to the charity, not the donor. However, donors have the satisfaction of knowing that their donation is amplified, allowing the charity to receive an additional 25% at no extra cost to them.

Higher-rate (40%) or additional-rate (45%) taxpayers can personally benefit by claiming back the difference between the higher rate of tax they pay and the basic rate (20%) that the charity claims. For example, if a higher-rate taxpayer donates £100 (which becomes £125 for the charity with Gift Aid), they can claim back £25 (£125 x 20%) via their Self-Assessment tax return, effectively reducing their own tax liability or increasing their overall donation to the charity.

How to claim Gift Aid as a donor

Donors just need to make a Gift Aid declaration to the charity when they donate. By signing or ticking a box, they confirm that they are a UK taxpayer and have paid enough tax to cover the Gift Aid that the charity will reclaim on their donation.

If a donor is a higher-rate or additional-rate taxpayer and wishes to claim the additional tax relief for themselves, they can do so in one of two ways:

Self-Assessment Tax Return: By including their Gift Aid donations in the appropriate section of their annual Self-Assessment tax return.
Contact HMRC: If they do not complete a Self-Assessment return, they can contact HMRC directly to inform them about their charitable donations, and HMRC may adjust their tax code.

What happens if someone completes the declaration that they shouldn’t have?

It is the responsibility of each individual donor to read the Gift Aid Terms and Conditions and only complete the declaration if this is applicable for them.

If the donor wants to change or cancel their declaration, they receive an email reminding them to contact the organisation they registered with after every Gift Aid donation they make.

Each time a donor donates through a Dona terminal or online webpage with Gift Aid, they will receive an automated email from Dona Donations to confirm that they have donated to that particular charity, with a reminder to update their preferences if Gift Aid details need to be changed.

Historic Gift Aid

Historic Gift Aid refers to the process of claiming Gift Aid retrospectively for donations made in previous tax years. Charities in the UK can claim Gift Aid on eligible donations made by UK taxpayers for up to four years prior to the end of the current accounting period. This allows charities to maximise the value of past donations, provided that a valid Gift Aid declaration is in place and the donor has paid sufficient tax to cover the claim.

Historic Gift Aid allows charities to claim Gift Aid retrospectively for past donations.
Charities can claim Gift Aid for eligible donations made up to four years prior.
Donors must be UK taxpayers and have paid enough tax to cover the claim.
The donor completes a Gift Aid declaration, allowing the charity to reclaim tax.
Dona makes it easy for charities to collect Historic Gift Aid through the Dona management portal.
Dona’s Gift Aid feature now includes Historic Gift Aid by default for new organisations.

Dona Gift Aid milestones

Between the launch of Dona in 2020 and July 2025, a total of 1,118,743 donations has been Gift Aided through the Dona system with a value of £18,916,484.
This means that as of July 2025, over £4,700,000 has been claimed in Gift Aid through Dona.
£5.5 million has been donated to Gift Aid eligible categories but not Gift Aided – about £1.4 million in Gift Aid lost! This shows there needs to be more education for donors and charitable organisations about the Gift Aid opportunity.
Dona has over 291,000 registered GA donors, from the 1.2 million donors who have used Dona.
The ability to turn Gift Aid on or off for each donation terminal is essential, as it isn’t always more profitable for a charity to collect the registration from donors. This is particularly true when at a busy event, where allowing donors to register would cause queues, which could be offputting for some donors, who might not wish to wait to make their donation.
On average, 41% of donations are given with Gift Aid across the Dona platform.

Dona offers award winning donation technology and continues to innovate and adapt our hardware and software to be the most efficient and productive at collecting donations and boosting organisations fundraising efforts.

Find out more about Dona’s donation machines, management portal and new AI-driven virtual fundraising assistant.

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Boost Your Summer Fundraising

April 2025

Digital Income Strategies for UK Museums & Visitor Attractions

Child on summer holidays looking at an exhibit at a museum

The summer period, with its longer days and increased visitor numbers, presents a golden opportunity for UK museums and attractions to make the most of donors’ generosity. In an increasingly cashless society, embracing digital fundraising is the perfect solution.

Some museums or attractions are FREE to enter and rely entirely on money from trusts, funds and public donations; others charge an entry fee and ask for donations to supplement their work, which can account for between 10 and 40%*of total income for larger museums and attractions.

*https://www.gov.uk/government/statistics/total-income-of-dcms-funded-cultural-organisations-20222023/total-income-of-dcms-funded-cultural-organisations-202223-headline-release

The Digital Shift in UK Giving

Charitable giving in the UK is continually evolving, with a trend towards digital and cashless transactions. While cash donations still exist, contactless payments and online giving are becoming the preferred donor choice. Museums and attractions must therefore adapt their fundraising strategies to meet these needs. The 2024 Annual Museum Survey noted an encouraging 27% increase in donations since 2019/20, showing the potential for growth with the right approach.

See how the Gurkha museum uses their Dona donation machines for fundraising success.

Embracing Self-Service Donation Terminals

Dona Donations’ Digital Collection Plates (DCPv3) provide a seamless and secure way for visitors to contribute. These terminals accept:

Contactless payments (tap-and-go) even offline
Mobile wallet transactions
Traditional Chip & PIN card payments

Main advantages:

Ease of Use: Quick and user-friendly for donors.
Self-service: They can operate without constant staff or volunteer supervision, freeing up your team for other roles.
Offline Capability: Can accept donations even without an internet connection. Ideal if your attraction is a cave, in a gorge, or particularly remote.
Low Fees and Automatic Updates: Ensuring cost-effectiveness and up-to-date technology.
Security and Compliance: Fully GDPR and PCI DSS compliant, reassuring both your organisation and visitors.

When placing the terminals, think strategically about high-traffic points within your attraction, such as entrances/exits, popular exhibition areas, or near the gift shop and cafe. Provide information where queues may form about how much donations make a difference to the museum or attraction.

Dona card terminals can be wall-mounted, positioned on a countertop or floor-standing, providing flexible options.

Leveraging QR Codes and Dedicated Web Pages

Beyond physical terminals, digital touchpoints like QR codes and dedicated web pages are essential.

QR Codes: These codes are scannable with a smartphone. Place them prominently on:
- Exhibition signage
- Information boards
- Visitor guides and maps
- Cafe tables
- Membership desks
- Marketing materials and flyers When scanned, a QR code should immediately direct visitors to your dedicated online donation page.
- Anywhere where the public are gathering or likely to be spending ‘dwelling time’ during their visit.

Dedicated Web Pages: Your website should feature a clear, compelling, and easy-to-navigate donation page. This page should:
- Be Mobile-Optimised: Most visitors will access it on their smartphones.
- State the Impact: Clearly articulate how donations will be used with several options available for donors to choose the fund they would like to support. Dona donation machines offer up to 20 personalised fund options.
- Offer Varying Amounts: Suggest different donation tiers – test different options to see which tiers resonate best for your visitors, this can be amended on different donation machines so can be specific to the exhibit or area that it is placed.
- Be Secure: Display trust badges and clearly communicate data security measures.
- Offer the option to register for Gift Aid if eligible. Can be switched on or off on Dona card machines.

Encouraging Donors:
- Compelling Storytelling: Use evocative language and imagery to explain why donations are needed. Highlight specific projects, conservation efforts, or community programmes that rely on visitor support.
- Show Impact: Instead of just asking for money, explain what a donation will achieve. Visuals, like a “thermometer” or “target” showing progress towards a fundraising goal, can be highly motivating.
- Subtle Reminders: Staff and guides can be trained to gently encourage donations, perhaps by mentioning the reliance on public support during interactions.
- Promote Gift Aid: For eligible UK taxpayers, ensure it’s easy to add Gift Aid, which increases the value of their donation by 25% at no extra cost to them.

Inspiring Donors and Amplifying Impact

Beyond the immediate transaction, it’s vital to inspire a deeper connection and amplify the impact of every donation.

Donor Recognition: Acknowledge donations, even small ones. A simple “Thank You” message on the digital terminal screen, followed by an email receipt and a more personal thank you if details are provided, can foster goodwill.
Showcasing Missions: Use your digital platforms to regularly update donors on how their contributions are making a difference. Share photos, videos, and stories of the projects funded by donations.
Social Media Amplification: Encourage visitors to share their experience and support on social media. Run campaigns that highlight your fundraising missions and the tangible benefits of donating. Include hashtags that can be used to group social posts.
Membership Integration: Promote membership programs as a way for dedicated supporters to provide ongoing support with added benefits.

Looking Ahead: Continuous Innovation

The summer offers a unique window to maximise your fundraising potential. By integrating modern digital tools like Dona Donations’ self-service terminals with well-placed QR codes, compelling web pages, and emotive storytelling, UK museums and attractions can significantly boost their donation income. Remember to continuously evaluate what works best for your audience and adapt your strategies to ensure sustained support for your invaluable cultural and heritage missions.